How does a Short Sale affect my credit?
There is no way around it, both foreclosures and short sales will affect your credit. Credit is affected by late payments and delinquency on your mortgage. A short sale, however, damages your credit much less than letting a property go back to a bank through a foreclosure process.
The real difference between a short sale and a foreclosure is realized in the future. There is an advantage when it comes to purchasing a new home. If a bank forecloses on your property, you must wait four to seven years before even attempting to buy a new home. When you complete a short sale, the wait is only about two years, according to current Fannie Mae guidelines.
It is a good idea to consult with an accountant or lawyer to discuss your credit situation. Remember, everyone's situation is different. You may be charged by these professionals, but the right information could save you a lot more in the long run, which is important for your credit down the road.
Are you facing foreclosure? Or experiencing a financial hardship?
Contact us for a free short sale evaluation. Contact us!